Why is it important to tenants whether or not you own the place?

Rental Property Investor · Nashville, TN · Member since 2017 · 59 posts · 47 votes

I’m consistently asked if I am a “private” landlord, or whether or not I own the property. While I never volunteer the information, I don’t lie when asked.

Why is it important to tenants to know if I own the place or not?

Should I not tell them I own the home?

Is there something I am missing?

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Jim K.

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes

If I had a landlord who pretended he was just the property manager and told me all the time that he couldn't do squat because he had no executive decision-making power regarding his own rental...and then I found out he was lying to me, I would have zero respect for this man, zero respect for his property, and I would not even try to deal fairly with him from that point on. He would be crap under my shoes as far as I was concerned.

I read some of these mincing-cutesy strategies and I wonder how few of you had fathers who taught you how to play a man's part in this world.

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
I never tell my tenants I own the place. I work for “the boss”
Sometimes they find out if they’ve been there a few years.
Now that I think about it the ones that know I own it are generally more respectful that the ones that don’t know.
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Account Closed
Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
7y

This is just my take, so take it with a grain of salt.

The only people who ask if I am a "private landlord" (that phrase specifically) have turned out to be bad news. Evictions, awful credit, "can you work with me" types. I think they want to see if you are manipulatable.

People who ask me "so, are you the owner or just manage it?" have been fine. They also tend to ask much later in the process and almost seems more like idle curiosity.

I dont know what the deal with that specific phrase is ("private landlord") but it has always been a red flag.
33 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
7y
they assume you are rich
20 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Mike Dymski:
they assume you are rich
and then they blow up your phone.. I was the worlds worst I would answer and just to get these people off the phone I would agree to things I should not have.. once I stopped that behavior and made them all deal with my secretary everything got better on my end.. I am the guy the professional tenant looks for and I admit it.. ergo I don't do rentals at the street level anymore.

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13 Reply
Joshua Tessier
Rental Property Investor · Manchester, NH · Member since 2019 · 186 posts · 156 votes
7y
In my state NH the rules differ if the property is owner occupied or not. It’s easier to disqualify tenants if it’s owner occupied also in my experience tenants often times think that they can get away with a little more if your the owner so they’ll ask for flexible when late or forgiveness when being jerks. The thing to remember is if you allow on tenant some leeway and you don’t follow you process or guidelines in your lease for one tenant but do for others you open yourself up to discrimination lawsuits if you enforce policies on a tenant by tenant basis. So be consistent and firm with everyone!
3 Reply
Susan Foreman
Baton Rouge · Member since 2019 · 28 posts · 29 votes
7y
They want to see if things are negotiable since you are the final word.
12 Reply
Susan Foreman
Baton Rouge · Member since 2019 · 28 posts · 29 votes
7y
They want to see if things are negotiable since you are the final word.
3 Reply
Heath M.
Rental Property Investor · Chattanooga, TN · Member since 2017 · 203 posts · 188 votes
7y
I like being able to walk away and think about it if asked a question. And my better half is a great sounding board so I like to at least bounce scenarios off her.
5 Reply
Curtis BidwellPro Member
Rental Property Investor · Olympia, WA · Member since 2014 · 781 posts · 744 votes
7y
The question is raised when the potential tenant has issues with their background and want to know if you will thoroughly and professionally vet them or if there’s a chance they can talk their way into unit your unit.
In my advertisement I always say state basic requirements (minimum income/credit score) and that all applicants will be professionally screened for rent history, verifiable income, credit, criminal ... that eliminates most people asking.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
7y
One thing that hasn't been mentioned yet. There are tenants out there that have evictions who were faithful at paying their rent but the home's owner didn't pay the mortgage and thus the tenant's became a victim of that. So if this happened to the tenant, they would be highly interested in the ownership situation of the place. All of our tenants are aware that we're the owners.
9 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
7y
If I had a landlord who pretended he was just the property manager and told me all the time that he couldn't do squat because he had no executive decision-making power regarding his own rental...and then I found out he was lying to me, I would have zero respect for this man, zero respect for his property, and I would not even try to deal fairly with him from that point on. He would be crap under my shoes as far as I was concerned.

I read some of these mincing-cutesy strategies and I wonder how few of you had fathers who taught you how to play a man's part in this world.
33 Reply
Deanna O.
Rental Property Investor · San Diego, CA · Member since 2010 · 377 posts · 314 votes
7y
@John Teachout - Except for a very brief period during the beginning of the housing foreclosure debacle, it would be hard to find people with evictions who were simply innoncent victims - AFTER the foresclosure there would be a fair bit of time to move out, and most of the banks were pretty accomodating to renters would would leave (they didn't necessarily get to finish their lease, however).
When a house is foreclosed on there is a whole process that has to be followed. By current CA law a renter who is unrelated to the homeowner has almost FOUR MONTHS in which to vacate, AFTER the change of ownership (early in the 2008 debacle I think it was 30 days, and it was a kind of "wild west" with "landlords" renting out properties that didn't even belong to them).
There will be notices of the foreclosure auction posted on the property BEFORE the auction, AFTER the auction, mail is sent to the house, etc etc. If the new owner finds it necessary to file an eviction that ALSO has to be served IN PERSON to the occupant (or a competant person), it gets posted on the door, mailed to the house, etc. They are served with a court date, have an appointement in which to appeal, etc. It's not like someone would be just happily sending the rent to the owner, and the next day find out that they had been evicted. Someone might have refused to leave, or refused to pay rent at all, but that's a different story.
Homeowners, and relatives of homeowners have a shorter time frame, since it is assumed that they were aware of the pending foreclosure (the foreclosee typically receives dozens of notices by certified mail, frequently 2-3 in a day, sometimes duplicated).
0 Reply
Pratik P.
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
Damn @Jim K. Tell us how you really feel!
14 Reply
James De Stefano
Real Estate Agent · Houston, TX · Member since 2017 · 292 posts · 233 votes
7y
Originally posted by @Pratik P.:
Damn @Jim K. Tell us how you really feel!

LOL. Yeah he took it pretty extreme on that one...
Helpful answers and viewpoints ITT. I think overall it is very important to show respect to each other in the end. If the tenant is paying regularly and asking for reasonable things, lying or shading the truth is not quite the best practice.
6 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
@Jim K.
I agree honestly is the best policy . I never understood this strategy of pretending to be somebody else lol the way I see it is don’t expect your tenants to be upfront and truthful if you are not ! An agreement is only as good as the two people signing it and if one of them is a liar what is that based on ?
11 Reply
Carl Stratton
Real Estate Broker · Tampa, FL · Member since 2017 · 9 posts · 26 votes
7y
@Brett Sayers
I prefer my tenants not know I am the owner. I use a Property Management company but I will go check on the properties to direct maintenance and sometime do light maintenance to identify problems. I have a company or trust listed as owner so technically I work for the owner which is another entity. I keep my rental business strictly Business. I don’t want the tenants working me for any type leverage on any issue they have with paying the rent or repairs. Keeping my identity private is my business. Paying the rent and abiding by the lease is the tenants business.
18 Reply
Tony Gunter
Investor · Canton, GA · Member since 2014 · 728 posts · 500 votes
7y
I don’t hide it. I make it brutally clear that I own the property, I take care of it, and I have pride in the product I’m offering.
I also make it clear that if you don’t do your part as a tenant (pay on time and care for the property) you will have a cross between a Paris Island drill sergeant and a pit bull (me) relentlessly on your @$$ determined to take you down and grind you to dust in the process for being such a putz to arrive in such a situation, and I get the job done too. Generally the response has been something like “yes sir”, followed by good performance during the tenancy. I leave no doubt who will be coming for them and what to expect. I’m working in the mid to upper low end rental niche, within one hour of my home, and fully self manage at this time.
11 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
Definitely be weary of applicants seeking a private landlord like Nicky points out. They have a story and need a sucker most times.

Houses are different than commercial multifamily rentals. I think my house tenants know I own and I'm ok with that. These are simple houses and I certainly don't appear rich. I can always 'talk it over with my wife to see if that's in the budget' for optional requests. Houses are only 15% of our portfolio though and everything is run through my PM Co and has been since 2003 so less than half ask at all.

Would be hard to claim you're not the owner when they make their checks out to you. LOL Also a simple google or county assessor search shows who owns what in seconds most places. Don't lie.

In the larger multis nobody really asks me. It probably doesn't seem in the realm of possibility that the frumpy handyman guy even owns his own ladder much less a whole building. Plus I run everything through my little mgt co and hold commercial assets inside MMLLCs. Technically not 'the owner' anyway.

Being another working stiff vs the owner of the apts has made my tenant relations life tons easier. Also easier to transition in on a new acquisition and out when time to sell. I'm either interviewing for or to be a new property manager. No biggie. No anxiety or drama from the tenants at purchase or exit.
6 Reply
Jim Goebel
Real Estate Investor · Des Moines, IA · Member since 2016 · 922 posts · 533 votes
7y
We own and manage our own stuff and we don't hide that or back away from that. We are able to provide a much level of customer service to our valued customers (tenants) as a result. Some tenants value this, and I don't mind if asked.
4 Reply
Nick Rutkowski
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Brett Sayers
I make it very apparent I own the place. It could be a personality complex but I’m not sure! Also, I run STRs so it’s better to reveal I’m the owner so I can accommodate my guests as best I can. Maybe when I hire a manager I’ll make it a secret but I’m not there yet.
2 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
Originally posted by @Nick Rutkowski:
@Brett Sayers
I make it very apparent I own the place. It could be a personality complex but I’m not sure! Also, I run STRs so it’s better to reveal I’m the owner so I can accommodate my guests as best I can. Maybe when I hire a manager I’ll make it a secret but I’m not there yet.

I think you're right about it being a personal decision to 'make it very apparent' if you own the place or not. I know more that prefer your way than not. Investors/entrepreneurs are take charge risk-takers after all. We have 5 basic needs above survival needs like air, food, water. We prioritize each differently. There are also 4 personality types, described easily as animals or more new wave as DISC. Then we each have one of 4 love languages.

We are in the people business. Learning choice theory, personality types and love languages allow us to interact with others on their level. Just from your post I would guess you are a Lion personality with Power as your top basic need and Affirmations as your love language. I would interact with you much differently than an Otter that loves Freedom as top basic and Quality Time love language. Just fun facts. Cheers!
0 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@Brett Sayers
Plenty of negativity in the answers here. I will take the opposite side of this coin. I tell people I am a private landlord, I self manage, and we are very attentive to our properties. Now, that doesn’t mean; “so feel free to walk all over me”. But, it does mean that I am not a Property Manager that doesn’t care. I do not take a week for a maintenance man to show up to fix what is broken.
So, it can be a positive and can “sell” your property a little more if a good prospective tenant wants to rent from you. And, if you can’t tell somebody you’re the owner because you’re afraid you’ll be taken advantage of, you shouldn’t be self managing.
7 Reply
Michael Kennedy
Rental Property Investor · Fint Michigan · Member since 2019 · 16 posts · 2 votes
7y
Even when i get asked about being the owner i refer them to "well "(insert company)" owns the home" so they don't later on bottle neck me with resident questions or work. although i do find it true to have a longer retention rate when the resident has a small family owned business they are renting from rather than a huge corporate company.
cheers,
0 Reply
Nick Rutkowski
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Steve Vaughan
I agree with what you say. It makes more sense to me that people know who I am right now because of my role as an owner/manager. Now when I have more STRs then the logical choice for me would be not to announce my ownership because my manager is an extension of me anyways.
0 Reply
Joshua Brown
Member since 2019 · 1 post · 1 vote
7y
@Jim K.
The truth is inconvenient at times isn’t it?
1 Reply

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